Volvo Cars Reports 25% Sales Drop in April

Sweden-based automaker Volvo Car Group said on Wednesday that its monthly sales fell 24.8% in April compared to a year ago as lockdowns in China and global supply chain problems hamper production.

However, demand remained strong, the company said, while shares of fully electric cars rose to 10% from 9% in March. It aims for 50% of its sales to be pure electric cars by the middle of this decade.

“In April, Covid-19 lockdowns in eastern China impacted retail deliveries in China and added more challenges to already weakened global supply chains, resulting in additional loss of production,” Volvo said in a statement.

Sales in China at the company, which is majority-owned by China’s Geely Holding, declined 47.8% in April, while in the United States, sales fell by 9.2% and in Europe by 23.2%.

Last week, Volvo Cars reported forecast-beating profits despite higher costs due to the war in Ukraine and a global shortage of semiconductors.

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